Malaysia could decide by as early as next year if it will opt for nuclear energy, making it the country's sixth energy source, Energy, Green Technology and Water Minister Peter Chin Fah Kui was quoted as Business Times as saying.

Chin said the new long-term energy policy is in the final stages of being drafted by his ministry and the Science, Technology and Innovation Ministry.

"It may be announced early next year," he said after visiting a waste disposal and recycle facility owned by MMC Corp Bhd's subsidiary Recycle Energy Sdn Bhd in Semenyih, Selangor, yesterday.

The facility also produces 8MW of renewable energy that is largely sold to TNB at 21 sen per kilowatt (kW)/hour.

Prime Minister Najib Razak, while visiting South Korea recently, said Malaysia would be looking at developing small nuclear reactors for industrial and daily use.

He said a small-scale nuclear reactor, generating between 200,000kW and 300,000kW of power, is safe and could be set up near a municipality.

Chin said the government wants to increase the use of renewable energy (RE) to reduce the country's reliance on key fuel sources of coal and gas.

He noted that it is targeted that RE would account for six per cent, or 1,000MW, of the total fuel mix by 2015, up from a meagre 0.91 percent, or 40.5MW, of our current total electricity generation.

Chin said his ministry had submitted proposals for incentives to the Ministry of Finance to spur the use of "green" energy and justify industry players' investments in such venture.

The government, he said, would consider a proposal from Recycle Energy seeking a raise in the RE tariff to 50 sen per kW/hour from the present 21 sen per kW/hour.